Effects of Varying Goal Types and Incentive Systems on Performance and Satisfaction

Abstract

Goals for high and minimum acceptable performance were manipulated under three incentive conditions: piece-rate, fixed rate, and no incentive. The nature of the incentive system and the difficulty of the high performance goal independently affected performance. Satisfaction, performance, and the relationship between the two were a function of the level of minimum acceptable performance, attainment and difficulty of the high performance goal. Implications of distinguishing between the effects of different goal types are discussed.